Companies registered in Hong Kong are not taxed, provided there are no transactions in Hong Kong. Otherwise, the tax rate rises to 16.5% of the profits earned during the year.
Accounting, auditing and tax returns
The Hong Kong tax authorities will send a form called “Income Tax Return” 18 months after the company is incorporated. This is the moment to ask for offshore status, if applicable. Therefore, on the anniversary of the establishment of your company, Offshore – Express will contact you to collect company bank statements with all supporting documents and prepare a report and audit work for working with a tax return and filing a PTR (income tax return) & ER (employer return) with the authorities Hong Kong. Income tax returns must generally be filed within one month from the date they are issued. Failure to file a tax return on time is considered an offense and is subject to a government fine.
Offshore status:
The company will pay tax if:
- it has its own premises in Hong Kong and a staff.
- The company is partially or wholly operated in Hong Kong.
- its customer base is located in Hong Kong.
- its suppliers are located in Hong Kong.
- warehouses in Hong Kong.
If none of these conditions apply, at the request of the client, Offshore Express will submit an application to the state. authorities of Hong Kong for documentary confirmation of the status of “offshore”. Once the tax department agrees with the claim, it will be valid for three to four years. This service is paid.
It should be noted that since Hong Kong is a Special Administrative Zone, it is perfectly acceptable to do business with China tax-free.
Hong Kong Accounting Price List
| Transaction / Recording | Accounting | Audit |
|---|---|---|
| Tax return excluding taxes (first year only) | 500 € | 0 € |
| Tax return excluding taxes (next year after starting operations) | 330 € | 500 € |
| 1 – 30 | 1000 € | 900 € |
| 31 – 59 | 1250 € | 1000 € |
| 60 – 119 | 1600 € | 1400 € |
| 120 – 239 | 2000 € | 1650 € |
| 240 – 359 | 2700 € | 2300 € |
| 360 – 479 | 3200 € | 2650 € |
| + 480 | On demand | On demand |
1. Accounting fees include:
- Accounting;
- Letter of commitment;
- balance sheet and financial statements;
- income tax return and employer’s declaration in the state. organs of Hong Kong.
2. The audit fee includes:
- audit;
- audit report;
- minutes of the board, approval of accounts; and
- calculation of corporate tax.
